Category : News & Reports

Market News

Today, 10% of Kimia Zanjan Gostaran Company’s shares, equal to 11,520,000 shares, with the ticker Kimia, were initially offered to investors in Iran Fara Bourse at $0.09. Being an industrial and Mineral Company established in 2007 and holding $3.17 mn in capital, the company mainly produces Zinc concentrate and Lead concentrate, aiming at meeting the needs of domestic markets and accessing international ones. Each brokerage house along with all branches was allocated 65,900 shares. In addition, the mentioned company has predicted to make a $0.02 EPS for the current FY ending 19 March 2016, demonstrating a 29% decline compared to the prior year.

According to the Ministry of Oil’s Director General of Strategic Planning, the country’s oil industry is in need of investment worth $150 bn during the Sixth Development Plan. He added that the private sector and foreign investors will fund $100 bn of the projects while the rest will be financed by domestic and local sources.

Market News

After passing a law, which directly affects the Visa Waiver Program and Iran’s calling it as a probable violation of the JCPOA, the US Secretary of State wrote a letter to Mr. Zarif, declaring that visa changes will not prevent the US from meeting JCPOA commitments in any way. Mr. Kerry has said:” I want to confirm to you that we remain fully committed to the sanctions lifting provided for under the JCPOA.” He also added that “We will adhere to the full measure of our commitments, per the agreement. Our team is working hard to be prepared and as soon as we reach implementation day we will lift appropriate sanctions.”

Stressing the fact that the impossibility to predict foreign exchange volatility is an impediment to both domestic economic practitioners and foreign investors, an official has stated that the formation of modern financial markets and derivatives is the first step towards stabilizing risky money markets and attracting foreign capitals. As a result, establishing an organized market known as currency derivative exchange can allow investors to plan and invest, assured of the currency fluctuations being covered.

As capital market authorities believe, the market has been able to use the full capacity of its IT structure, stressing the necessity to develop IT solutions and the SEO’s connecting to the Business Registration Organization, which can facilitate and accelerate the bureaucratic procedures through an updated online system.

Corporate Earnings

Holding $8.26 mn in capital, Qadir Khodro Leasing Company has predicted to make a $0.01 EPS for the FY ending 21 December 2016, demonstrating 25% rise compared to the same period last year.

Holding $825.99 mn in capital, Omid Investment Management Group has predicted to make a $0.01 EPS for the FY ending 20 January 2016, which shows a 26% decline compared to the same period last year.

Owning $165.20 mn in capital, Pardis Petrochemical Company has recognized a $0.05 EPS for the FY ended 22 September 2015, which shows no significant difference from what had been made in the same period last year.

In the Market

Today, tickers in the Conglomerates and Computer sectors attracted investors’ attention, resulting in the improvement of the TEDPIX; however, investors’ behavior was still an indicator of their being concerned and overwhelmed.

Most symbols in the Computer sector ended in the green, facing buy queues. Iran Kish Credit Card Company has plans to raise its capital by 100% relying on its shareholders’ paid in capital and claims due; this capital raise will be spent on modifying its financial structure and purchasing POS system equipment. This firm will re-raise its capital in the following year in order to reach $55.07 mn.

Tickers in the Conglomerate sector could also attract investors, resulting in the all-share index improvement. Among symbols in this group, Qadir Investment Holding Company has announced its EPS for the FY ending 21 December 2015 to be a $0.01, holding 1,266.52 mn in capital. This estimated EPS is 12% lower than the previous year’s.

Finally, symbols in the Oil Products sector ended in the red, facing sell queues; however, Bandar Abbas Oil Refining Company faced price hike after facing heavy sell queues in the recent trading sessions. US dollar appreciation in the recent days could have exerted positive effect on the exporting companies’ profit margin, increasing their gains; however, the price drop in commodity and oil in global markets has resulted in the companies’ failure to do so. In fact, the oil price drop to less than $36 has faced many symbols with sell queues.

IFB at a Glance

DISCLAIMER: This report has been prepared and issued by Agah Brokerage Firm on the basis of publicly available information, internally developed data and other sources believed to be reliable. The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. Agah does not assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. Any expressions of opinions are subject to change without notice.

Market News

Central Bank of Iran (CBI), had in the past obliged all the banks to set considerations, for loans granted to their clients, on the basis of accrual accounting to realize the penalized amount as revenue. The decision was to help the government to earn more fortune from taxes, exerted on the funds, generated via late payment penalty fees. There was a 6 % penalty on deferred repayments of the interest rate.

Market News

Oil price plummet made Iran and Russia to undertake negotiations for new petrochemical contracts. Due to falling prices there may be a petrochemical exports cut back to Europe. Accordingly, Russia appears to be the new market for Iranian petrochemical products.

Consumers and producers protection organization has authorized a 6% rise in the price of three dairy products; Milk, Yoghurt and Cheese. According to the notification, all dairy factories are bound to add 1000 IRR to the current milk purchasing price per kilo and mutually the products price shall get raised.

Market News

Although allowing inspectors to continue monitoring the country’s nuclear program, the unanimous decision by the UN nuclear watchdog’s board finally decided to close the inquiry into the possible military dimensions of Iran’s nuclear program. In this regard, the Foreign Minister, Mr. Zarif has stated that “the resolution by the board of governors of the agency.. shows the peaceful nature of Iran’s nuclear program”. Referring back to the 14th July agreement, this decision is a key step towards the lifting of sanctions, followed by the release of the long-awaited report by the IAEI about 2 weeks ago.

According to the head of IRICA, foreign trade statistics will be daily updated on the website of Iran’s Custom Administration, located at www.irica.gov.ir from January, which used to be published at the end of each quarter. Besides, as Mr. Karbasian continues, the custom clearance for imported goods has declined from 26 days to 2 days and exporters can complete the whole process of exporting their goods within 1 day.

Corporate Earnings

Estimating to make a $0.01 EPS for the FY ending 19 March 2016, Bank Tejarat has managed to make a $0.001, covering 37% over the first half. It is so while it had been able to cover 50% of its estimations the same period last year.

Bank Shahr (City Bank) has registered its capital raise plan in companies’ registration office at 9 December 2015, based on its fixed assets revaluation, from $218.53 mn to $430.78 mn.

In the Market

At the beginning of today’s trading session, some sectors were warmly welcome by investors; however, despite the positive PMD news, the market ended in the red, paving the ground more for speculative activities. As the result, tickers in the Sugar sector witnessed rather balanced and positive trades and Shirvan, Quchan and Bojnourd Sugar Company, which has kept its high volume trading in the recent days, faced a buy queue.

The determination of gas feed price for tickers in the Chemicals and Oil Products sector has not reached any conclusion, yet. Being led by Bandar Abbas Oil Refining Company, the Oil Products sector has still kept its bearish trend due to the declining commodity prices in global markets and it seems quite far-fetched to be able to attract investors’ attention. A few symbols in the Chemicals sector were traded in the green; however, generally speaking, the trade volume was rather low.

Although anticipated to become the center of attention of investors after the PMD news released, symbols in the Automotive sector mainly ended in the red, facing price plunge. The price of Iran Khodro Company fell by 2% and Pars Khodro Company’s price also experienced a 4% drop.

Finally, among the tickers in the Other Financial Intermediaries sector, Bahman Leasing Company was the only ticker traded in the green area; the company has received its permit to conduct its capital raise plan by 66.6%. Such an increase in its capital will be based on its shareholders’ paid-in capital and retained earnings, reaching from $ 16.60 mn to $ 27.66 mn aimed at modifying its financial structure and boosting its operating leasing activities.

IFB at a Glance

DISCLAIMER: This report has been prepared and issued by Agah Brokerage Firm on the basis of publicly available information, internally developed data and other sources believed to be reliable. The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. Agah does not assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. Any expressions of opinions are subject to change without notice.

Market News

As the minister of economy and financial affairs stated at the National Conference on Bolstering the Business Environment held yesterday, the roadmap for foreign economic cooperation has been developed and the potential investment opportunities in each industry are to be introduced to foreign delegates. Stressing that foreign investment should be allowed to enhance domestic manufacturing, Mr. Tayebnia announced the government’s major goals, including curbing inflation, promoting economic stability and conducting structural reforms aiming to enhance business environment of the country.

After introducing Islamic Treasury Bills and Estesna Sukuk in the last recent months, Auto Investment Securities (AIS) are also about to be introduced in near future. Being based on Moshareka Islamic contract, such securities are aimed at helping automakers finance their manufacturing.

Some time ago, the Central Bank of Iran, following short-term expansionary incentive policies, announced that this regulatory body in the monetary market intends to let the bankers reduce legal requirements with the aim of curbing recession and flowing the blood in the contracted veins of the economic artery, which nevertheless, resulted in the interbank interest rate drop to 21.5%. According to a recently published letter, written by the CBI, Bank Iran-Venezuela is bound to keep 10% of its reserves as the legal requirement; Bank Ansar, Post Bank and Bank Sina will enjoy an 11% legal requirement while Bank Mellat, Bank Saderat, Bank Ayandeh, Bank Karafarin, Bank Eqtesad Novin, Bank Saman, Bank Melli and Bank Sepah are all required to maintain 12% of their reserves with CBI.

Market News

The governor of the Central Bank of Iran, Valiollah Seif was appointed as the chairman of the international financial body for 2017 and the deputy chairman for 2016 by the Council of the Islamic Financial Services Board during the 27th meeting held in Jeddah on Tuesday. Being an international standard setting organization promoting and enhancing the stability of Islamic services industry through issuing standards and principles, IFSB conducts research and organizes seminars and conferences for regulators in the banking, capital market and insurance sectors.

According to the deputy foreign minister, Iran will take action against the bill recently passed by US House of Representatives after the Nov. 13 attacks in Paris regarding applying modifications to the Visa Waiver Program (VWP); such modifications will restrict travelling to the US for those who had been previously allowed to enter the country without obtaining a visa. Majlis National Security and Foreign Policy Commission members have taken a critical position against this move, declaring that the 14th July agreement bounds President Obama to block such hostile moves against Iran. Such an approach by the US representative has also been severely criticized by the Iranian users of social media, addressing the Persian-Language spokesperson for the US Department of State to inform the top US administration officials.

Corporate Earnings

In its first prediction for the FY ending 20 December 2016, Dr. Abidi Pharmaceutical Laboratories has estimated to recognize a $0.01 EPS, demonstrating 4% rise compared to the amount made the same period last year.

In its first prediction for the FY ending 20 December 2016, Iranian Insurance Company has estimated to make a $0.01 EPS, which shows a 13% increase, compared to its EPS for the same period last year.

Iran Arqam Company has registered its capital raise plan from $11.01 mn to $13.78 mn on 13 December 2015, relying on its claims due and investors’ paid in capital.

Holding $22.05 mn in capital, Cultural Heritage Investment Group has predicted to recognize a $0.03 EPS for the FY ending 20 December 2016, showing a 28% decline.

In the Market

As the bearish market digs deeper, more speculative pressures were seen on the Sugar sector. Shirvan, Quchan & Bojnourd Sugar Company was crowned as the highest volume traded symbol in this sector; however, although most tickers experienced a price hike, Shirin Sugar Company and Sabet Khorasan Sugar Company ended in the red.

At the end of today’s trading session, high volume and value trades were seen in the Banking, Automotive and Transportation sectors and most symbols in the mentioned industries ended in the green. These three sectors will be the direct recipients of sanctions removal.

Unfortunately, despite no positive reaction to the anticipated lifting of sanctions yet, the market seems to be more influenced by the oil price fall in global markets, which has blurred its prospect. As the result of more oil price drop, petrochemical products’ prices declined; therefore, negative trades were witnessed in the Chemicals sector. Most tickers ended in the red; however Maroon Petrochemical Company and Iranian Petrochemical Investment Group Company were of the exceptions. In fact despite its strong potential, this sector is considered very risky.

Finally, tickers in the Cement sector continued their passiveness, observed in the recent months; the housing market is down and due to low demand levels, most tickers ended in the red. However, Kerman Cement Company is among the rare symbols in this sector releasing healthy financial reports and considering its EPS, enjoying a reasonable P/E ratio.

IFB at a Glance

DISCLAIMER: This report has been prepared and issued by Agah Brokerage Firm on the basis of publicly available information, internally developed data and other sources believed to be reliable. The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. Agah does not assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. Any expressions of opinions are subject to change without notice.

Market News

The 12th international conference on Iran’s Petrochemical Industry kicked off. Being known as one of the important conferences in this field held in 2 consecutive days, this conference is to host Iran’s vice president, the foreign affairs minister and petroleum minister, elaborating on Iran’s political and economic conditions in the post-sanction era and how to manage foreign investment.

Market News

In line with paragraph 4 of the Joint Comprehensive Plan of Action, the P5+1 has finalized the draft resolution on Iran’s nuclear program on Tuesday to be voted on December 15 by by the IAEA Board of Governors. In its latest report, the UN nuclear monitoring body announced the non-existence of any diversion of nuclear material for non-civilian objectives in Iran’s nuclear activities. According to this draft resolution, both Iran and the IAEA have fully undertaken the steps defined in the roadmap signed by Amano and Salehi on July 14th. Following that, the Iranian deputy foreign minister stressed that now, all measures over the past issues have been completely concluded and PMD has been left behind.

Market News

As the result of the paid visit to Iran by the Italian Economic Development Minister and the 300-member delegation of business men and traders in early August after the primary nuclear agreement between Iran and world powers, an MOU has been recently signed between IRI Shipping Lines Company as Iran’s representative and the Italian Worldwide Shipping Group Fratelli Cosulich as Italy’s representative aiming to set up a joint shipping firm, based on which both parties will establish a joint firm in Italy offering services in selling and marketing fields and providing representative services to the shipping lines of IRISL Group.

As Iran Khodro Deputy CEO for export has announced, the number of vehicles produced by this company in Iraq has exceeded 10,000, comprising 48 Runna, 48 Samand, 1344 Peugeout 405 and 8304 Peugeout Pars. Saeed Tafazzoli also added that the company has plans to allocate the company’s second production line of Iraq site to Arisan Pickup. At the end, he stated that the Iraq site will produce at least 15,000 vehicles in the second half of the current year, as planned.